Former Obama Economic Advisor Predicts ‘Nothing Can Change’ Negativity Over Inflation in Coming Months

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Jason Furman, a former economic advisor for Barack Obama, told the New York Times this week that Democrats have little to no hope of changing people’s negative views on inflation in the coming months.

In a scathing report from the Times diving into the “deepening peril” Democrats are facing as President Joe Biden sits in the White House while inflation hits record highs, Furman said negativity over the soaring prices on everything from gas to groceries are too “deeply baked” into Americans’ minds for there to be a turnaround before the midterm elections.

“It’s a very negative thing politically for the Democrats,” the Harvard University economist told reporter Alan Rappeport. “My guess is that the negative views about inflation are so deeply baked in that nothing can change in the next few months to change them.”

Dean Baker, senior economist at the Center for Economic and Policy Research, told the outlet his “concern” is “inflationary expectations” becoming embedded in the economy as Americans continue to worry about skyrocketing prices.

“The concern that I have is that you get inflationary expectations embedded in the economy and that leads to the wage-price spiral that we saw in the 70s. It becomes self-perpetuating,” Baker said.

President Joe Biden, who is facing low poll numbers as some Democrats question whether he should run again, dismissed data on inflation this week, calling a report from the Consumer Price Index (CPI) “out of date.”

While today’s headline inflation reading is unacceptably high, it is also out-of-date. Energy alone comprised nearly half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June.

The president said tackling inflation is his “top priority,” adding he is working to increase oil production to combat prices at the pump. He is also calling for action from Congress.

“I will urge Congress to act, this month, on legislation to reduce the cost of everyday expenses that are hitting American families, from prescription drugs to utility bills to health insurance premiums and to make more in America,” he said in a statement on his three point plan to tackle inflation.